ELEXON, the not-for-profit organisation created to balance UK electricity supply, has awarded Logica a five year BPO deal worth £40m.

The contract, an extension of an existing arrangement until 2014, will see Logica provide the hosting and communications services of the central systems for electricity settlement and balancing.

ELEXON hopes the deal will drive efficiency and innovation whilst delivering significant cost reductions to the company.

Stuart Senior, ELEXON’s Chief Executive said, “Our main priorities were to secure value for money for our customers and ensure that any transition activities from the existing service to the new contract are delivered in a seamless and smooth way.”